Public Governance, Health and Foreign Direct Investment in Sub-Saharan Africa

Posted: 15 Jul 2009

Date Written: August 2009

Abstract

Using 1985-2004 yearly panel data for 70 developing countries, including 28 from Sub-Saharan Africa (SSA), the paper finds that once market size is accounted for, SSA's foreign direct investment (FDI) deficit with other regions of the world is mainly explained by the insufficient provision of public goods: relatively low human capital accumulation, in terms of education and health in SSA. On the basis of additional cross-sectional data, the paper finds that in the absence of HIV and malaria, net FDI inflows in the median SSA country could have been one-third higher during 2000-2004, with slightly more than one-half of this deficit explained by malaria.

Keywords: F23, H11, H41

Suggested Citation

Azémar, Céline and Desbordes, Rodolphe, Public Governance, Health and Foreign Direct Investment in Sub-Saharan Africa (August 2009). Journal of African Economies, Vol. 18, Issue 4, pp. 667-709, 2009, Available at SSRN: https://ssrn.com/abstract=1433981 or http://dx.doi.org/ejn028

Céline Azémar (Contact Author)

University of Glasgow ( email )

Adam Smith Business School
Glasgow, Scotland G12 8LE
United Kingdom

Rodolphe Desbordes

SKEMA Business School ( email )

Lille
France

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